Don’t expect the Fed to slow its roll anytime soon
Zero signs the fed is going to slow down on rate hikes: A fourth consecutive 75-basis-point interest rate hike is all but guaranteed when the Federal Reserve meets in November for its penultimate policy meeting of 2022 as officials worry about sticky inflation, the New York Times reports. Officials had expected to discuss slowing the rapid pace of rate hikes next month but hotter-than-expected inflation data and strong employment figures in September mean that they’ll likely have to maintain their hawkish stance for longer and raise rates higher than previously forecast.
The ECB will likely follow suit: One official at the European Central Bank is advocating the bank to hike interest rates by 75 bps at both of its upcoming meetings in October and December, according to Bloomberg.
ALSO IN PLANET FINANCE-
- UK inflation resumes its rise: UK inflation hit 10.1% in September, returning to the 40-year-highs seen in July after a slight dip in August. (ONS)
- Another country is planning a national digital currency: India’s central bank is moving forward with plans for a digital INR and will conduct “limited pilot launches” over the next six months. (Nikkie Asia)
- Meta is about to be GIF-less: Meta will comply with an antitrust order from a UK watchdog to sell GIF library Giphy. (The Verge | Statement)
- DEWA slips below IPO price: Shares in Dubai main utilities firm DEWA dipped below their debut price of AED 2.48 yesterday for the first time since its blockbuster IPO six months ago. (Bloomberg)
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EGX30 |
10,156 |
-0.1% (YTD: -15.0%) |
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USD (CBE) |
Buy 19.62 |
Sell 19.73 |
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USD at CIB |
Buy 19.65 |
Sell 19.71 |
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Interest rates CBE |
11.25% deposit |
12.25% lending |
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Tadawul |
11,795 |
-0.1% (YTD: +4.6%) |
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ADX |
10,067 |
-0.2% (YTD: +18.6%) |
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DFM |
3,389 |
-0.6% (YTD: +6.0%) |
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S&P 500 |
3,695 |
-0.7% (YTD: -22.5%) |
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FTSE 100 |
6,925 |
-0.2% (YTD: -6.2%) |
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Euro Stoxx 50 |
3,471 |
+0.2% (YTD: -19.2%) |
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Brent crude |
USD 92.41 |
+2.6% |
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Natural gas (Nymex) |
USD 5.48 |
+0.3% |
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Gold |
USD 1,631.70 |
-0.2% |
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BTC |
USD 19,119 |
-1.1% (YTD: -58.6%) |
THE CLOSING BELL-
The EGX30 fell 0.1% at yesterday’s close on turnover of EGP 1.26 bn (20.8% above the 90-day average). Foreign investors were net sellers. The index is down 15.0% YTD.
In the green: Telecom Egypt (+4.4%), Mopco (+2.1%) and Egypt Kuwait Holding-EGP (+1.1%).
In the red: e-Finance (-2.6%), GB Auto (-2.3%) and Heliopolis Housing (-1.9%).
Asian markets are down in early trading this morning and futures suggest both European markets and Wall Street — barring the Dow Jones — will also open in the red later on today.